NEW YORK--(BUSINESS WIRE)--Newman Ferrara LLP is conducting an investigation on behalf of shareholders of OSI Systems, Inc. (“OSI”) (Nasdaq:OSIS) into potential breaches of fiduciary duty by OSI’s Board of Directors.
On November 14, 2012, various news sources, including Bloomberg News, reported that Congressman Mike Rogers, Chairman of the House Transportation Security Subcommittee, had sent a letter dated November 13, 2012, to the Transportation Security Administration (“TSA”) stating that OSI “may have attempted to defraud the government by knowingly manipulating an operational test” in connection with OSI’s body scanners used for U.S. Airport security screening. Specifically, tests may have been falsified on software intended to stop OSI’s airport body-screening machines from recording graphic images of travelers. On this news, OSI shares declined $21.40 per share, or 28%, to a closing price of $54.89 per share on November 15, 2012.
Thereafter, on December 6, 2013, the TSA canceled a $60 million contract for carry-on baggage screening equipment that had been awarded to OSI less than three months earlier, citing the equipment’s use of unauthorized Chinese-made parts, in violation of TSA security policies. According to U.S. lawmakers, OSI’s use of the unauthorized, foreign component raises questions about whether the equipment is vulnerable to sabotage or espionage. On this news, OSI shares plummeted as much as 41%, the biggest intraday stock drop in OSI’s history, to a trading low of $39.00 per share on December 9, 2013.
Investors of OSI stock may contact Newman Ferrara attorney Jeffrey M. Norton (email@example.com) to discuss this investigation, their rights as OSI shareholders, or potential remedies.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.